MKT 301

1
5
Chapter
Global Markets and Marketing
The significance of international marketing to
firms. What makes foreign markets
attractive. Challenges in designing marketing
strategies. Developing Global Brands
2
The Significance of International Trade

• Access to products otherwise unavailable
• Foodstuffs
• Minerals and other natural resources
• What dont we have in U.S.?
• Comparative Advantage
• Advantage in natural resources
• Advantage in human resources

3
Exports as a Percent of GDP in Selected Countries
(2006)

• Country Exports as a of GPD
• United States 11
• United Kingdom 28
• France 27
• Germany 45
• Japan 16
• Canada 36
• Mexico 28
• China 39

Source http//datafinder.worldbank.org/exports-go
ods-services-gdp Year 2006
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International Trade Balance Info.
8
The Role of International Trade Balances

• A countrys balance of payments is an accounting
  record of all its transactions with all the other
  nations in the world.
• A countrys trade balance is the difference
  between what it exports and what it imports.
• When exports exceed imports, trade surplus
• When imports exceed exports, trade deficit

9
A countrys expenditures across all categories
must equal income across all categories

• If total expenditures are more than total income,
  the country must borrow to make up the
  difference.
• If a countrys debt grows, it is faced with
  pressure to raise taxes and lower government
  spending.

10
The U.S. has large expenditures in four
categories that significantly affect its balance
of payments.

• Military forces stationed overseas
• Foreign aid
• Oil imports
• American tourist travel abroad

To offset these expenditures and maintain
equilibrium in the balance of payments, U.S.
businesses need to generate a substantial trade
balance.